Accelerating Your Go-to-Market Strategy

By

Randy Goldsmith, PhDwww.t3dc.org

www.venturecapitaltools.com

Every Entrepreneur Needs Investment Capital

© 2005 Goldsmith

Venture Investors

Accelerating Commercialization

1st Five Fundamental Investor Questions

• How big is the market pain?

• How good is the solution?

• Is there a profit opportunity?

• Is this the right entrepreneur?

• Can it be done?

2nd Five Fundamental Investor Questions

• How much money do you want?

• What are you going to do with it?

• How much money will I get back?

• When will I get my money back?

• How will I get my money back?

Investigation Feasibility Development Introduction Growth

Pre Seed Seed Early Stage

IPIPOO

Mid Stage Late Stage

© 2005 Goldsmith

Lower RiskHigher Risk

SAEDC Invests

Financing Cycle for Startup CompaniesVenture-backed Financing

Debtand/orEquity

Equity

Process & Toolkit

InnovationReadiness

Product Readiness

VentureReadiness

Risk Readiness

EntrepreneurReadiness

Venture Valuation

Business PlanReadiness

CapitalizationEvaluation

www.venturecapitaltools.com

The Process

Entrepreneur Assessment

Product Assessment

Venture Assessment

Commercialization Strategy

Business Plan Assessment

Risk Assessment

Valuation

Investor Presentation

Term Sheet

Due Diligence

$$$$$$$$$$$

Funding Pathway

© 2009 Goldsmith

Readiness Assessment

Entrepreneur Assessment

Product Assessment

Venture Assessment

Commercialization Strategy

Business Plan Assessment

Risk Assessment

Valuation

Investor Presentation

Term Sheet

Due Diligence

$$$$$$$$$$$

Funding Pathway

© 2008 Goldsmith

The Ideal Deal• A high performance enterprise

• A radical, disruptive, platform innovation

• Exponential growth potential

• Serial entrepreneur

• Reliable financing resources

VALIDATED

Typical Clients

• All have an innovation.

• All want money.

• Few are investor ready.

• Some have intellectual property.

Entrepreneur Readiness Assessment

Entrepreneurial Readiness

© 2005 Goldsmith

Right Brain!

Entrepreneurial Assessment

• Credentials

• Character

• Circumstances

• Capabilities

• Commitment

Product Readiness Assessment

Product Characteristics

• TypesTypes– Process

– Product/Service

– Strategy

• ImpactImpact– Sustaining

– Disruptive

• Value– Enabling– Competitiveness– Profits

• ImprovementImprovement– Incremental

– Advanced

– Radical

• UtilityUtility– SpecificSpecific

– PlatformPlatform

• RisksRisks– DevelopmentDevelopment– MarketMarket– FinancingFinancing

© 2008 Goldsmith

Third-party Validation

• University scientist

• Industry subject matter expert

• Knowledgeable investor

• Consultant

Venture Readiness

The Commercialization Pathway

Commercialization Plan

112

3

4

5

6

7

Time

Money

MilestonesCapital infusionExpensesRevenue

7

NO!4?

Commercialization Plan

11 23

4

5

6

7

Time

Money

MilestonesCapital infusionExpensesRevenue

7

Yes!

Stage 3Development

Stage IInvestigation

Stage 2Feasibility

Stage 4Introduction

Stage 5Growth

Stage 6Maturity

Engineering Prototype

Technical Analysis

TechnicalFeasibility

Pre-productionPrototype

ProductionSupport

StrategicMarket plan

Market need Assessment

Market Validation

Sales &Distribution

MarketDiversification

StrategicB/plan

Venture Assessment

EconomicFeasibility

Business Start-up

BusinessGrowth

Business Maturity

Technical

Marketing

Business

Market Study

Production

COMMERCIALIZATION MODEL

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Step 7

Step 8

Step 9

Step 10

Step 11

Step 12

Step 13

Step 14

Step 15

Step 16

Step 17

Step 18

© 2008 Goldsmith

Stage 3Planning

Stage IInvestigation

Stage 2Feasibility

Stage 4Development

Stage 5Growth

Stage 6Maturity

Engineering Prototype

*Engineered prototype*Material, equipment, process requirements

and sourcing plan.*Performance assessment

plan.*Optimize design.

Technical Analysis

*Problem/Solution technical evaluation.

*IP Review.*Preliminary subject

matter expert review.*Preliminary cost

analysis.

Technical Feasibility

*Bench design working model.

*Proof of concept.*Customer-driven

revisions.*Manufacturability and scalability analysis.

Pre-production Prototype

*Pre-production prototype.*Production process design.

*Material and supplier agreements.

*Pilot production.*Performance, reliability &

Quality tests.

Production

*Equipment and facility.*Full scale production.

*Performance, reliability &quality tests.

*Field support system.

Production Support

*Customer support.*New/improved products.

*Warranty program.*Research and development.

Strategic Business Plan

*Business plan.*Venture financing..

*Operations implementation plan.

*Advisory and director boards.*Staffing plan.

Venture Assessment

*Profitability assessment.*Preliminary business

model design.*Capital requirement estimate.*Management requirements.

Economic Feasibility

*Develop 5-year pro-forma.*Develop financial

requirements.*Business organization.*Secure seed financing.

*IP filing.

Business Start-up

*Initial staff hires and training.*Business policy,

procedures & operations.*Venture financing.

Business Growth

*Full staff.*Management operations.

*Business systems.*Contracts.

*Venture financing.

Business Maturity

*Corporate development.*Financial management.*Return on investment.

Enterprise growth Strategy.

Strategic Market Plan

*Market tests.*Advertising, sales,

distribution plan.*Marketing materials.*Market development

*Resource and timeline plan.

Market Need Analysis

*Problem/Solution market evaluation.

*Industry trends analysis.*Preliminary competitive

assessment.*Informal market

validation.

Market Validation

*Initial sales.*Customer satisfaction

survey.*Production, market

adjustments.

Sales & Distribution

*Sales.*Market expansion.*Customer surveys.

*Promotional campaigns.

Market Diversification

*Market trend analysis.*Marketing resource

allocation.*New marketing strategies.

Market Study

*In-depth target market assessment.

*In-depth competitive analysis.

*Expression of interest from primary target

market.

Detailed Commercialization Model© 2008 Goldsmith

Technical

Marketing

Business

Stage 3Development

Stage IInvestigation

Stage 2Feasibility

Stage 4Introduction

Stage 5Growth

Stage 6Maturity

Engineering Prototype

Technical Analysis

TechnicalFeasibility

Pre-productionPrototype Production

Market need Assessment

StrategicB/plan

Venture Assessment

Business Start-up

Technical

Marketing

Business

Initial Assessment (completed )

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Step 7

Step 8

Step 9

Step 10

Step 11

Step 12

Step 13

Step 14

Step 15

Step 16

Step 17

Step 18

Pr

Stage 3Development

Stage IInvestigation

Stage 2Feasibility

Stage 4Introduction

Stage 5Growth

Stage 6Maturity

Engineering Prototype

Technical Analysis

TechnicalFeasibility

StrategicMarket plan

Market need Assessment

Venture Assessment

EconomicFeasibility

Technical

Business

Market Study

Optimal Path (completed )

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Step 7

Step 8

Step 9

Step 10

Step 11

Step 13

Step 14

Step 15

Step 16

Step 17

Step 18

© 2008 Goldsmith

Step 12

Stage IInvestigation

Stage 2Feasibility

Commercialization Strategy

• Vision

• Product

• Marketing

• Financing

• People

• Operations

Ideally, a team effort!

Business Plan Readiness

Accelerating Commercialization

Business Plan Readiness Assessment

© 2008 Goldsmith

Executive Summary

Introduction Company History Mission Objectives

Product Description Technology Intellectual Prop Application

Marketing Competitive Analysis Distribution Channel Marketing Strategy Pricing

Management Executive Team Staffing

Financing P&L Projections Proforma Use of Funds Offering

A FundablePlan:

more than the average

plan.

Maryann’s Law: You canalways find what you’renot looking for.

Risk Readiness

Accelerating Commercialization

Miller’s Law: You can’t tell how deep a puddle is until you step in it.

IdentifyingRisk:

Fore warnedIs

Fore armed!

Risk Factors

• Product Risk

• Market Risk

• Financial Risk

• Management Risk

• Execution Risk

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